CDK Global, a US automotive retail software provider, has started legal proceedings against rival firm Defendants Tekion (Tekion) alleging illegal data scraping and unfair competition practices.
Filed in a US federal court in San Francisco, the lawsuit alleges that Tekion used unlawful methods to gain access through “practices that damage competition and harm customers”.
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CDK’s lawyers at Susman Godfrey said in the lawsuit: “This court must intervene to restore a fair and legal playing field among CDK and its competitor Tekion.”
CDK claims that Tekion and one of its business partners, InDesign Data, are engaged in a “sophisticated, coordinated, and illicit campaign” to illegally access CDK’s data systems.
These systems are integral for dealers to manage daily sales and service operations.
The lawsuit contends that Tekion’s alleged actions disrupt CDK’s existing business relationships with dealers and these practices are in violation of California’s unfair competition law.
CDK’s legal complaint details how Tekion allegedly instructed dealers to establish a virtual “tunnel” from their data management systems to Tekion’s, effectively encouraging them to breach contracts with CDK.
CDK is demanding unspecified monetary damages and a court injunction to prevent any further alleged intrusions into its data systems, reported Reuters.
This legal dispute intensifies the rivalry between the two firms, following a December 2024 antitrust lawsuit where Tekion accused CDK of monopolising the dealership management systems market, a claim CDK has since contested and sought to dismiss.
With over four decades in the industry, Austin-based CDK asserts that its dealer management systems are utilised by nearly 15,000 car and truck dealers across North America.
CDK was hit by a cyberattack in the middle of 2024, when its systems went down in the US and caused considerable disruption in the US automotive retail sector.
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